Ethiopia's Central Bank Bans Former Global Bank CEO After Regulatory Probe

August 1, 2026
By Mintesinot Nigussie

The National Bank of Ethiopia (NBE) has barred Tesfaye Boru, the former Chief Executive Officer of Global Bank Ethiopia (GBE), from serving as a board member, chief executive officer or senior executive at any financial institution for five years after a regulatory investigation uncovered governance and operational deficiencies at the lender. The decision follows Tesfaye's dismissal by GBE's Board of Directors last week. The shake-up came after the central bank investigated the alleged rapid withdrawal of a time deposit estimated to amount to hundreds of millions of birr, although people familiar with the matter gave differing estimates of the sum involved.

The prohibition took effect on July 28, 2026, the same day Tesfaye was formally removed as chief executive, according to a July 29 letter from the central bank first reported by Capital Newspaper. According to the NBE, the enforcement action was based on a special inspection that examined GBE's corporate governance, lending and credit administration, human resource management, foreign exchange operations and overall financial management. The inspection identified multiple breaches of regulatory directives and the bank's internal policies that, it said, undermined the institution's sound operation.

The central bank said its findings were discussed with GBE's Board of Directors and senior management, which broadly agreed with the issues identified. The bank subsequently submitted a corrective action plan outlining measures to address the deficiencies. The NBE said the latest inspection findings, together with Tesfaye's previous regulatory record, justified stronger supervisory action. It cited written warnings issued in May 2021 and November 2024 before invoking Article 20(1) and (2) of the Banking Business Proclamation No. 1360/2025 and Article 10 of Directive No. SBB/89/2024.

"Accordingly, based on the findings of the inspection, as well as the previous written warnings ... you are removed from your position as Chief Executive Officer of GBE effective July 28, 2026," the letter stated. The order bars Tesfaye from holding board or senior executive positions in any financial institution operating in the country for five consecutive years, extending the consequences of the regulatory action beyond Global Bank Ethiopia until July 2031.

Source: FSX Business News